Just received a lease offer with 3 options (below) all with 3yr terms and options to extend for 2 years. Am a total newbie when it comes to these leases. Anyone have any any background or intel on activity in this section and whether this is a reasonable offer. Many thanks in advance.
3K per NMA with 1/8 2K per NMA with 3/16 1K per NMA with 1/5
Welcome to the forum.
I would not sign a lease with a two year extension. Too much can happen in five years and I want them to either drill in the shorter time or someone lease me at competitive rates in the future. I usually pick the highest royalty as the payout from royalties far outweighs the bonus payment in a successful area. I always ask what they are offering for 1/4 just to see if it is available. I also don’t jump on a lease offer immediately. I wait a bit to see if I get other offers that are better.
There are horizontal wells all around, so the new wells are likely that.
If you are new to leasing, it would be very wise to get an oil and gas attorney to look over the lease as most draft leases are rarely in the mineral owner’s favor and need extensive edits. I am also a fan of force pooling in OK as it has its own set of benefits.
All great info/advice.
Thank you very much for responding!
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